Scale Venture Partners closes $400M fund, BofA exits

Scale Venture Partners, formerly Bank of America's venture arm called BA Venture Partners, said Wednesday that in wrapping up its second fund, the bank exited the fund entirely.

Due to demand from a dozen institutional investors, BofA agreed to transfer its interest in the $400 million.

Bank of America (NYSE: BAC) continues to be the sole investor in Scale Venture Partners first fund, which was a $500 million fund.

Kate Mitchell, managing director with Scale Venture Partners, told the Business Times that California's largest bank had intended to keep a 25 percent stake in the second fund, but opted to step aside when other limited partners were eager to invest.

San Francisco-based Probitas Partners served as placement agent for the fund.

"Throughout our fundraising process, we heard that the team and our thesis-based approach to investing were important differentiators," Mitchell said. "It was gratifying to generate such strong interest, which was a nice validation of our approach to investing and our top-quartile results."